BILL NUMBER: SB 713	CHAPTERED  10/10/99

	CHAPTER   632
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 5, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 10, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 10, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 2, 1999

INTRODUCED BY   Senator Burton

                        FEBRUARY 24, 1999

   An act to add Section 24410.5 to the Education Code, relating to
the State Teachers' Retirement System, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 713, Burton.  State Teachers' Retirement System:  benefits.
   Under the State Teachers' Retirement Law, retired members, option
beneficiaries, and surviving spouses of the Defined Benefit Program,
as defined, receive monthly allowances that are subject to
supplementary increases to preserve their purchasing power, as
specified.
   This bill would establish minimum annual allowance amounts payable
to specified retired members, option beneficiaries, and surviving
spouses, which amounts would vary according to the member's years of
credited service, subject to specified exclusions and exceptions.
The bill would appropriate $750,000 from the Teacher's Retirement
Fund to pay the administrative costs of implementing these
provisions.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 24410.5 is added to the Education Code, to
read:
   24410.5.  (a) Notwithstanding any provision of this part,
including, but not limited to, subdivision (e) of Section 22664, the
annual allowance payable on the effective date of this section to a
retired member, an option beneficiary, or a surviving spouse
receiving an allowance pursuant to either Section 23805 or 23855
shall not be less than the amount identified in the following
schedule for the number of years of the member's credited service
under the Defined Benefit Program at the time of the member's
retirement, disability, or death, excluding service credited pursuant
to Sections 22714, 22715, 22717 and 22826, after the application of
all allowances and allowance increases authorized by this part,
including those specified in Sections 24412 and 24415, as those
sections read on December 31, 1999, excluding annuities payable from
the accumulated annuity deposit contributions or the accumulated
tax-sheltered annuity contributions, and excluding those provided
pursuant to Section 24410.7:


    20 years of credited service ..............   $15,000
    21 years of credited service ..............   $15,500
    22 years of credited service ..............   $16,000
    23 years of credited service ..............   $16,500
    24 years of credited service ..............   $17,000
    25 years of credited service ..............   $17,500
    26 years of credited service ..............   $18,000
    27 years of credited service ..............   $18,500
    28 years of credited service ..............   $19,000
    29 years of credited service ..............   $19,500
    30 years or more of credited service ......   $20,000

   (b) Notwithstanding subdivision (a), the amount identified in the
schedule in subdivision (a) shall be reduced:
   (1) By 50 percent for a beneficiary receiving an allowance under
Option 3 or Option 7.
   (2) By one-third for an option beneficiary receiving an allowance
under Option 4 after the death of the member or for a member
receiving an allowance under Option 4 after the death of the option
beneficiary.
   (3) By 50 percent for an option beneficiary receiving an allowance
under Option 5 after the death of the member or for a member
receiving an allowance under Option 5 after the death of the option
beneficiary.
   (4) By a percentage equal to 100 percent minus the percentage of
the member's modified allowance received by the option beneficiary
for each option beneficiary receiving an allowance under Option 8.
   (5) By 60 percent for a surviving spouse receiving an allowance
pursuant to subdivision (a) of Section 23805.
   (6) By 50 percent for a surviving spouse receiving an allowance
pursuant to subdivision (c) of Section 23805 or Section 23855.
   (c) A member to whom a disability allowance is payable on January
1, 2000, who subsequently receives a service retirement allowance
pursuant to Section 24213 shall, upon the retirement for service,
receive an increase in the service retirement allowance pursuant to
this section.
   (d) A member, beneficiary, or surviving spouse may receive an
allowance pursuant to this section only if the member was an active
member at the time of the member's retirement, or death and, for
those members who retired for service, the member retired on or after
age 55, unless the member's allowance was not subject to a reduction
due to retirement prior to an age specified in this part.
   (e) A retired member, option beneficiary, or surviving spouse
subject to this section shall receive the annual minimum allowance
pursuant to this section unless the system receives in writing, on a
form prescribed by the system, notification from the member, option
beneficiary, or surviving spouse before May 1, 2000, of his or her
election not to receive the increase provided under this section.
   (f) Benefits payable under this section shall be initially paid by
the system on July 1, 2000.
  SEC. 2.  There is hereby appropriated the sum of seven hundred
fifty thousand dollars ($750,000) from the Teachers' Retirement Fund
to the Teachers' Retirement Board for the payment of the
administrative costs of implementing the provisions of Section 1 of
this act.
